KB Securities on the 14th said global growth will enter full swing for Amorepacific(090430) as it strengthens SAT (social, Amazon, TikTok)-centered marketing. It maintained a "buy (BUY)" rating and a target price of 190,000 won.
Son Min-young, an analyst at KB Securities, said in a post-investor day note on the 11th hosted by Amorepacific, "It is securing medium- to long-term growth drivers based on product competitiveness in high-growth categories such as derma cosmetics and hair," adding, "It is at the stage of full-fledged expansion of its global business by strengthening marketing centered on social media, Amazon, and TikTok." Son also said, "From the third quarter of this year through the third quarter of next year, tangible results will emerge."
Derma cosmetics and hair care are cited as Amorepacific's medium- to long-term growth drivers. Derma cosmetics plans to expand its push into overseas markets with AESTURA and Illiyoon, and hair care with Mise-en-scène and LABO-H. The company set a goal to reach 1 trillion won in sales for each of the two businesses by 2030.
Because derma cosmetics target sensitive and troubled skin, the process of proving product safety and efficacy is crucial. Hair care likewise requires ingredients and technological capabilities that can address different hair and scalp characteristics by ethnicity.
Son said, "Amorepacific's accumulated product verification data, ingredients, and patents through long-term research and development will serve as a competitive edge in overseas markets."
A shift in global marketing methods was also cited as a key growth factor. Amorepacific plans to expand marketing investments that had focused on the offline retailer Sephora to online channels such as Amazon and TikTok. The strategy is to concentrate marketing expense in line with how consumers actually discover and purchase products.
Son said, "The core of the BY27 (2027) business strategy is strengthening marketing investment using social media, Amazon, and TikTok," analyzing that "with the shift to a marketing strategy based on a multi-brand approach, global growth will begin in earnest from 2027."
Amorepacific presented targets of 4.9 trillion won in revenue and an operating margin of 11%–12% in 2027. In particular, it plans to grow sales in the United States by 20%, Europe, the Middle East and Africa (EMEA) by 30%, and Japan by 30%.
KB Securities forecast Amorepacific's consolidated revenue this year at 4.7 trillion won, up 11.4% from a year earlier. It projected operating profit up 47.7% to 495.9 billion won, with an operating margin of 10.5%. By region, it projected the Americas to grow 30.8% and EMEA 30.9%.